A much-needed breather: Annual General Meeting via video-conference/other audio visual means during calendar
year 2020
Relaxation granted to convene Annual General Meeting (“AGM / Meeting”) via video-conference (“VC”) / other audio visual means
(“OAVM”) during the calendar year 2020, to all the companies including those whose financial year ended on March 31, 2020.
In view of several representations and simultaneous restrictions of movement of persons at several places under Covid-19, Ministry of
Corporate affairs (“MCA”) issues the clarification.
In wake of worldwide outbreak of Covid-19, MCA with the right intent has issued a clarification on holding of AGM through
VC or any OAVM mode via General Circular No. 20/2020.
The MCA keeping in mind the exigencies, subsequent extended nationwide lockdowns and difficulties involved in physical
meetings, has recognized the need of providing relaxation from the requirement of convening in person AGM for the calendar
year 2020.
The clarification has been issued with the primary objective of ensuring smooth adherence of Companies Act, 2013 (“the
Act”) provisions amidst the pandemic lockdown for convening the AGMs which is the one of the few opportunities
shareholders have to question the board, engage directly with management, and hear the views of other shareholders.
On Tuesday, May 05, 2020, the MCA released a circular addressing all the Regional Directors, Registrar of Companies, and
Stakeholders so as to clarify norms for holding of AGM through VC / OAVM mode.
The Ministry issued the clarifications in furtherance of the several representations received for providing relaxations in the
provisions of Companies Act, 2013 or rules made to allow companies to hold AGM in a manner similar to the one provided in
General Circular No. 14/2020 and 17/2020 (“EGM circular I and II”) which deals with the conduct of Extraordinary General
Meetings (“EGM”) through VCs.
General Circular No. 18/2020 illuminates that the companies whose financial year ended on December 31, 2019 can hold their
AGM via VC / OAVM by extended timeline of September 30, 2020; and by virtue of this circular, the matter has been further
examined to allow the companies whose financial year ended on March 31, 2019 or companies following different financial